The current EPC minimum for a rental property, EPC E, already has real penalties attached. The proposed EPC C minimum from October 2030 would extend the same kind of enforcement to a higher bar, but with a specific built-in limit that's worth understanding before assuming the worst.
The rule that already applies
Today, letting a property rated F or G, or continuing an existing tenancy on one, breaches MEES. Local authorities can issue financial penalties of up to £5,000 per property for non-compliance. This isn't proposed or upcoming, it's the current rule, and it's the reason F and G-rated rental properties are already at a real disadvantage regardless of what happens with EPC C.
What's proposed for EPC C
The Warm Homes Plan (January 2026) proposes extending a similar enforcement approach to a C minimum from October 2030. The detail that changes the picture compared to a simple pass/fail rule is the proposed £10,000 cost cap: if reaching EPC C would cost more than that for a given property, a landlord who has spent up to the cap without reaching C would likely qualify for an exemption, rather than facing an open-ended obligation to keep spending.
That matters because for a lot of older housing stock, particularly solid-wall properties without cavity insulation, the honest cost of reaching C could exceed £10,000. The cap is what stops the rule from being unworkable for those properties, at least under the current proposal.
Where this still isn't settled
The exemption process itself, how it's registered, how long it lasts, and what evidence is required, hasn't been finalised, because the underlying legislation hasn't passed yet. Anyone giving you a confident, specific answer about exactly how the exemption will work is describing an intention, not a confirmed process.
The practical takeaway
Two different situations call for two different responses right now. If your property is currently F or G, the £5,000 penalty risk is real today, not in 2030, and worth addressing regardless of what happens with the C proposal. If it's D or E, there's no current penalty, but it's worth knowing roughly what reaching C would cost, so a possible 2030 deadline doesn't arrive as a surprise, and so you can weigh that cost against the property's actual return.
Our EPC C upgrade cost calculator gives a rough estimate for either case, and the rental yield calculator puts that cost in context against what the property actually earns.
This article reflects the government's stated proposals as of publication. Penalty figures relate to the current EPC E minimum under MEES; proposed EPC C penalties haven't been finalised. Not financial or legal advice.